Published 10 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Nine steps: get properly pre-approved and understand the qualifying rate; work out the cash you need including both land transfer taxes; decide representation and sign an agreement you have read; choose an area before a property; view with a checklist; offer with conditions that match the risk; do the due diligence during the conditional period; prepare for closing; and do not change anything about your finances until the deal has funded. The step people skip is the second one, and it is the one that hurts.
Step 1: Pre-approval, and what the number means
A pre-approval is a lender’s conditional opinion of what you could borrow, plus a rate hold. It is not a mortgage and it says nothing about a property you have not bought yet.
Your amount is calculated at the minimum qualifying rate: for uninsured mortgages at federally regulated lenders, the greater of your contract rate plus two percentage points, or 5.25%. OSFI confirmed that rule remains in effect in January 2026. Ask your broker, in writing, for the qualifying rate used and what they assumed for property tax and condominium fees, because low assumptions inflate the number.
Step 2: Count the cash — all of it
This is the step that ruins otherwise sound plans. Toronto charges its own municipal land transfer tax on top of the provincial one, and neither can be added to a mortgage.
| Purchase price | Ontario LTT | Toronto MLTT | Total, in cash |
|---|---|---|---|
| $700,000 | $10,475 | $10,475 | $20,950 |
| $900,000 | $14,475 | $14,475 | $28,950 |
| $1,050,000 | $17,475 | $17,475 | $34,950 |
| $1,250,000 | $21,950 | $21,950 | $43,900 |
Add legal fees and disbursements, title insurance, adjustments, moving, and on a condominium a reserve fund contribution of roughly two months of common expenses. First-time buyers may claim up to $4,000 provincially and up to $4,475 municipally; confirm eligibility with your lawyer rather than assuming.
Then subtract all of that from your savings before calculating your down payment percentage. Most buyers who discover they have slipped under 20% discover it here, and it changes the mortgage rules that apply to them.
Step 3: Decide representation, and read the agreement
Under Ontario’s current framework you are either a client under a representation agreement or a self-represented party. There is no middle category. A registrant is not permitted to provide services, opinions or advice to a self-represented party.
Ask three questions before you sign anything: am I a client or a self-represented party; is this brokerage representation or designated representation, and who is the designated representative; and what happens if the brokerage ends up on both sides of a transaction? Then read the term and the holdover clause before you sign, at home rather than at a kitchen table with a pen in your hand.
Step 4: Choose the area before the property
Toronto is a collection of small markets with very different price behaviour, and the area decision is the one you cannot renovate your way out of. Before you look at listings, spend time in your shortlisted pockets on a weekday evening and a Saturday morning, and test your actual commute at the hour you would actually travel.
Then get comparable sold data for that specific pocket. TRREB reported an average Etobicoke sale price of $1,049,793 across 243 sales in August 2026 — a figure that blends detached houses and condominium apartments across a large area and tells you almost nothing about any individual street.
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Jatin Dua, Broker of Record — RE/MAX Quantum Realty Inc., Brokerage. Not intended to solicit buyers or sellers currently under contract with another brokerage.
Step 5: View with a checklist
The things you cannot change deserve most of your attention:
- On a house: lot, orientation, grading and water, wiring type and electrical service size, supply plumbing, drains, roof age, foundation, and whether the basement has ever been wet.
- On a condominium: exposure, floor, whether the view is protected, layout efficiency and whether every bedroom has a real exterior window, balcony depth, parking and locker ownership status, and where the unit sits relative to the elevators and the garbage chute.
- Everywhere: noise. Stand still for two minutes with everyone quiet.
Finishes are the cheapest thing to change and the easiest thing to be seduced by.
Step 6: Offer with conditions that match the risk
Each condition you drop moves risk onto yourself. Know the price of each.
| Condition | What dropping it costs you |
|---|---|
| Financing | Your deposit and potentially more if the lender declines — including for reasons about the property rather than about you |
| Home inspection | Whatever the inspector would have found, priced at your expense |
| Status certificate review (condominium) | The corporation’s reserve fund, litigation, rules and any contemplated special assessment, accepted unseen |
| Sale of your property | Carrying two properties, or selling under time pressure |
In competitive situations, the levers to reach for before price are the deposit size, the closing date the seller wants, a clean and complete offer, and a live underwritten mortgage file rather than a portal rate hold.
On competing offers: the brokerage must tell every person making a written offer how many competing written offers there are. The contents may be shared only if the seller directs it, and never in a way that identifies another buyer.
Step 7: The conditional period
Short, and busy. Typically five to fifteen business days depending on what you negotiated.
- Deliver the deposit within the window the agreement specifies — usually 24 hours from acceptance for “upon acceptance.” Have certified funds arranged in advance.
- Book the home inspection immediately.
- Order the status certificate on a condominium; the fee is capped at $100 including taxes, and your lawyer needs time to read it.
- Get your file to the lender the same day, and confirm the appraisal is ordered.
- Confirm insurance is available on the property as it is — wiring, plumbing, roof, and any oil tank.
- Waive or fulfil the conditions in writing, on time. A missed deadline is not a technicality.
Step 8: Preparing to close
- Your lawyer will tell you the exact certified funds required a few days before closing — balance due after the mortgage advance and deposit credit, plus land transfer taxes, legal fees and adjustments.
- Have the money liquid and traceable. Lenders check the source of down payment funds over ninety days.
- Arrange property or condominium unit insurance effective the closing date; your lender will want confirmation.
- Book movers, and on a condominium book the elevator with property management as soon as the deal is firm.
- Do the pre-closing visit. You are entitled to it under the standard form; use it.
- Set up utilities in your name effective the closing date.
Step 9: After closing
Change the locks, find the water shut-off, locate the electrical panel and label it, and put the first year’s maintenance in the calendar. On a condominium, register with the corporation, read the rules properly and find out how the amenity bookings and the loading dock work.
The order, condensed
- Pre-approval, with the qualifying rate in writing.
- Cash arithmetic, including both land transfer taxes, before setting a price range.
- Representation decided and the agreement read.
- Area chosen, commute tested, comparable data in hand.
- Viewings with a checklist of the things that cannot be changed.
- Offer, using deposit and dates before price.
- Conditional period, executed fast and in writing.
- Closing preparation, funds liquid and insurance arranged.
- Nothing about your finances changes until it has funded.
Frequently asked questions
How much cash do I need to buy a home in Toronto?
Your down payment plus closing costs, and the closing costs are larger than most buyers expect because Toronto charges its own municipal land transfer tax on top of the provincial one. On a $1,050,000 purchase that pair alone is about $34,950 in cash, none of it financeable, before legal fees, title insurance, adjustments and moving. Work the tax out before you calculate your down payment percentage.
What rate is my pre-approval based on?
Not your quoted rate. For uninsured mortgages at federally regulated lenders, qualification uses the minimum qualifying rate: the greater of your contract rate plus two percentage points, or 5.25%. That is why pre-approval amounts feel lower than buyers expect, and it is the rate you should treat as your real budget.
Do I need a real estate agent to buy in Toronto?
You are either a client under a representation agreement or a self-represented party, and a registrant is not permitted to provide services, opinions or advice to a self-represented party. So without your own representation you get no advice from anyone in the transaction, including the listing side. Ask whether you would be a client, and whether it is brokerage or designated representation.
How long is the conditional period?
Typically five to fifteen business days, depending on what you negotiated and what conditions you have. It is short and busy: deposit delivered, inspection booked, status certificate ordered and reviewed on a condominium, the file to the lender, the appraisal ordered, and insurance confirmed. Waivers must be in writing and on time — a missed deadline is not a technicality.
Should I waive the financing condition?
Only with your eyes open. A pre-approval underwrites you, not the property, and lenders decline over low appraisals, condominium status certificate issues, uninsurable wiring or plumbing, and property types they do not finance. If you buy firm and the lender declines, you are in breach: the deposit is generally forfeited and the seller may claim further losses.
Can I find out how many other offers there are?
Yes. The brokerage must communicate the number of competing written offers to every person making one. The substance of those offers may be shared only if the seller directs it, and never in a way that includes personal information or identifies another buyer. So “three offers, and I cannot say more” is the rules working normally.
What first-time buyer relief is available in Toronto?
A provincial land transfer tax refund of up to $4,000 and a Toronto municipal rebate of up to $4,475 on a qualifying purchase. On a new or substantially renovated home there may also be the First-Time Home Buyers’ GST/HST Rebate of up to $50,000, subject to value thresholds and dates. Each has its own eligibility rules — confirm each separately with your lawyer and accountant.
What should I avoid doing before closing?
Anything that changes your financial picture. Lenders re-pull credit before funding, so do not change jobs, buy or lease a vehicle, finance furniture or appliances, open a store credit card, miss a payment, or move large sums between accounts without telling your mortgage broker first. Most last-week failures are self-inflicted and avoidable.
Sources
- OSFI — Minimum qualifying rate for uninsured mortgages — the greater of contract rate plus 2% or 5.25%, confirmed January 2026. Accessed 10 September 2026.
- Ontario Ministry of Finance — Land Transfer Tax — the provincial brackets and the first-time purchaser refund. Accessed 10 September 2026.
- City of Toronto — Municipal Land Transfer Tax — the Toronto brackets and rebate. Accessed 10 September 2026.
- O. Reg. 567/05: General — representation, self-represented parties and s. 22.7 competing offers. Accessed 10 September 2026.
- TRREB Market Watch, August 2026 — the Etobicoke average sale price of $1,049,793 across 243 sales. Accessed 10 September 2026.
Related reading
- Mortgage pre-approval in Ontario: what it actually guarantees
- Deposit vs down payment in Ontario: not the same thing
- How long does a conditional offer last in Ontario?
- Fiduciary duty: what your Ontario agent legally owes you
- The final walk-through before closing
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway in Etobicoke, with more than four years of active GTA transactions and over $100M in sales volume. Step two is the one nobody wants to do first, and it is the one that decides whether the rest goes smoothly.
Reach me at connect@jatindua.com or 833-330-1925.